Phi Labs, a supporter of Archway, said on Thursday that it had secured USD 21 million in a preliminary fundraising round headed by crypto investment companies CoinFund and Hashed. Archway is a Cosmos-based system that compensates creators of decentralised applications (dapps) on the network.
The Archway protocol serves as a gateway to Cosmos, allowing developers to create cross-chain dapps and earn proportionate benefits for their inputs to the network.
In an interview, Phi Labs founder Griffin Anderson remarked:
“Developers are the most crucial component for any layer 1 protocol. They provide users, transactions, and activity to the system, but they don’t get paid until they invest in the protocol token.”
Working of Archway
Dapps receive Archway’s native ARCH token in proportion to the number of users they attract to the network. Dapps may provide rewards for their own clients without having to dig into a finite token treasury since developers are free to use those prizes anyway they wish.
Phi Labs will utilise the extra funds to develop programming tools to make it much easier for third-party developers to create on the protocol, according to Anderson. Wintermute, Figment, Chorus One, stake.fish, Lemniscap, Hypersphere Ventures, and Cosmostation were among the other investors in the round.